Sadolin & Albæk Corporate Solutions (SACS) often ends up with a more comprehensive solution than originally requested by the client. But if you are a client of SACS, there is no cause for concern. In our books, added attention to detail does not mean added costs for our clients, but rather added savings in terms of their lease overheads.
Indeed, a substantial rental reduction is the outcome when IT company SAP contacts us via our international allicance partner, JLL. SAP rents an office building of 10,000 sqm, of which the company uses some 8,000 sqm and sub-lets the remaining 2,000 sqm. SAP's largest sublessee has gone bankrupt, and SAP therefore needs to find a new sub-lessee for the vacant space.
When taking on the case, we suggest that we - rather than just going ahead with the search for a sublessee - take a closer look at how SAP uses its 8,000 sqm. This turns out to be a worthwhile exercise. By analysing SAP's space utilisation and actual area requirements, we find that a substantial area reduction would be a great advantage to SAP. In addition, we recommend that all sublease premises be returned to the landlord as SAP is in fact incurring losses on these lease activities and has no need for an option to expand.
We initiate the search for new head-office premises meeting the reduced area requirements of SAP along with negotiations to reduce the existing lease. As far as the latter is concerned, we start negotiations on behalf of SAP with the existing landlord.
Based on our negotiations, SAP stays on at the same address but reduces its lease to some 6,000 sqm. The need to identify a sublessee is eliminated, and at the same time we manage to achieve a reduction of the square metre rent payable by SAP, which means that the company ends up with a more than 50% cut in lease overheads.